Sec. 17b-523. (Formerly Sec. 17a-363). Continuing-care contract requirements.
Sec. 17b-523. (Formerly Sec. 17a-363). Continuing-care contract requirements. (a) Each continuing-care contract shall provide:
(1) That the party contracting with the provider may rescind the contract by notifying the provider in writing by registered or certified mail of such rescission within thirty
days following the execution of the contract; that in the event of such rescission, any
money or property transferred to the provider shall be refunded, less (A) those costs
specifically incurred by the provider or facility at the request of the resident and described
in the contract or in an addendum thereto signed by the resident; and (B) a reasonable
service charge, not to exceed the greater of one thousand dollars or two per cent of the
entrance fees; and, if applicable, that the resident to whom the contract pertains shall
not be required to move into the facility before the expiration of the thirty-day period;
(2) That if, after the thirty-day period, a resident dies before occupying a contracted-for living unit, or on account of illness, injury or incapacity is precluded from occupying
a contracted-for living unit under the terms of the continuing-care contract, or a resident
dies before the commencement of care under a continuing-care contract to provide care
in such person's home, upon notice to the provider by registered or certified mail, the
contract is automatically cancelled and the resident or the resident's legal representative
shall receive a refund of all money or property transferred to the provider, less (A) those
costs specifically incurred by the provider or facility at the request of the resident and
described in the contract or in an addendum thereto signed by the resident; (B) a reasonable service charge not to exceed the greater of one thousand dollars, or two per cent
of the entrance fee, and (C) if the contract includes occupying a living unit in a facility
and the unit was actually available for occupancy, the usual monthly charge for that
unit, prorated on a per diem basis, for the period beginning seven days after the execution
of the contract and ending on the last day of the month in which the provider receives
notice that the resident will not occupy the unit;
(3) That if construction of the facility has not yet begun, construction will not begin
until a minimum number of living units, which shall not be less than one-half of the
units in the facility or if the construction is to be completed in stages, one-half of the
units evidencing financial feasibility in accordance with section 17b-526, have been
presold, and a minimum deposit of five per cent of the entrance fee per unit for all
presold units or ten thousand dollars per unit for all presold units, whichever is less, has
been received by the provider. The requirements of this subdivision shall not apply to
any continuing-care contract for the provision of care in a person's home.
(b) Each continuing-care contract shall also specify:
(1) The circumstances under which the resident will be permitted to continue to
receive care and shelter in a facility or care at home with the right to future access to
care and shelter in such facility and medical or nursing services or other health-related
benefits, and other benefits under the continuing-care contract in the event of possible
financial difficulties on the part of the resident;
(2) The terms and conditions under which a contract for continuing care may be
cancelled by the provider or by the resident; and the conditions, if any, under which all
or any portion of the entrance fee will be refunded in the event of cancellation of the
contract by the provider or by the resident or in the event of the death of the resident
prior to or following occupancy of a living unit;
(3) The conditions under which a living unit occupied by a resident may be made
available by the provider to a different or new resident other than on the death of the
original resident;
(4) The manner in which the provider may adjust periodic charges or other recurring
fees and the limitations of such adjustments, if any, and, if there is no such limitation,
a clear statement that such increases may be made at the discretion of the provider.
(P.A. 86-252, S. 4, 17; P.A. 90-159, S. 2; P.A. 08-36, S. 3.)
History: P.A. 90-159 in Subsec. (a) required a minimum number of living units to be sold prior to construction of a
facility to be completed in stages and a minimum deposit to have been received by the provider for all presold units prior
to construction of any facility; Sec. 17-538 transferred to Sec. 17a-363 in 1991; Sec. 17a-363 transferred to Sec. 17b-523
in 1995; P.A. 08-36 amended Subsec. (a)(2) by adding provision re automatic cancellation of contract if resident dies
before commencement of home care and making conforming changes, amended Subsec. (a)(3) by adding exemption for
continuing-care contracts for care at home, and amended Subsec. (b)(1) to require each continuing-care contract to specify
circumstances under which resident in financial difficulties who is receiving care at home can continue such care.